WellCare Unit Coughs Up $6.5M To Bury Overtime Action

Law360, New York (September 24, 2012, 2:17 PM EDT) -- Comprehensive Health Management Inc. asked a New York federal judge Friday to approve a $6.5 million settlement with 1,400 benefit consultants who claimed the managed care services provider intentionally misclassified them to avoid paying overtime.

The deal — apparently first reached tentatively after a July mediation session — will put to rest more than two years of litigation over whether CHM violated the Fair Labor Standards Act and New York state labor laws by not compensating the consultants for extra work. The company, a subsidiary of WellCare Management Group Inc., called them “outside sales people,” a category exempt from overtime pay....

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